Tata Motors is actively looking out for a new partner for its passenger vehicles business. Here are all the details on the latest development at the maker of models like Harrier, Nexon and Tiago
Tata Motors, the maker of popular models like the Tiago, Nexon and Harrier, is looking out for a new partner for its passenger vehicle business in order to get ready for growth in the next decade. This new partnership will likely to see a huge investment, which will go into developing new technologies, regulations according to the company’s top official. The automaker is looking out for to collaborate via which they can expand their passenger vehicle business around the world. Early this year, Tata Motor’s major board approved to form a separate entity for a private vehicle and electric vehicle business by transferring their relevant assets and employees to the newly formed separate entity.
Tata Motors President Passenger Vehicle Business Unit (PVBU) Shailesh Chandra said: “The whole purpose of subsidiarisation is to actively look for a partner because this is a reality for all of us that a collaboration can unleash a bigger potential in the next decade which is going to see significant investments in new technologies and regulations.”
The collaboration would also help in reducing product lifecycles and enhance new product launch intensity, he added. “All this requires huge investments and agility is also the key. So this is something which we are actively looking into,” he added.
He said that the subsidization process is on and the company is actively looking out for a partner by which they can create assets and capabilities with a win-win situation for both.
When asked about the timelines for both the initiatives, Chandra noted: “There are no specific timelines... as far as subsidiarisation process is concerned, converting the business into a separate legal entity, we would like to accelerate in a year and as far as a partner is concerned it is an active work which we will continue to work on.” Talking about the company’s growth in the private vehicle segment, Mr Chandra said that despite the lockdown, the carmaker registered double-digit growth during the first half of this fiscal year.